Santiment has spotted a crucial indicator ahead of the upcoming bull run.
Many investors would rely on the Mean Dollar Invested Age for direction ahead of the bull cycle.
Bitcoin experienced a falling Mean Dollar Invested Age in most historic bull cycles.
Santiment, the market intelligence platform with on-chain and social metrics, has spotted a crucial indicator ahead of the much-anticipated crypto market bull run. In a recent post on X, the crypto analytics platform noted the Mean Dollar Invested Age as one indicator that would provide direction to many crypto traders and investors.
📊 With many traders waiting for the #crypto #bullrun to resume following a month of price chopping, one of the primary signals to watch is Mean Dollar Invested Age. This metric tracks the average age of investments in an asset that have sat in the same wallet.⏫ Rising line =… pic.twitter.com/Cc1MbCTvNk
— Santiment (@santimentfeed) April 12, 2024
According to Santiment, the Mean Dollar Invested Age tracks the average age of investments in assets held in the same wallet. The platform shared a pictorial version of the indicator, showing a drop in BTC’s Mean Dollar Invested Age. Santiment explained that if the trend continues, it would indicate that crypto Whales are still moving stagnant coins back into circulation, significantly improving the odds of a continued bull run.
To further interpret the shared data, Santiment explained that a rising line indicates investments are getting more stagnant, and old coins are sticking in their same wallets, implying its blockchain is becoming less active. On the contrary, a falling line suggests investments are moving back into regular circulation on the network, signifying increased activity on its blockchain.
Meanwhile, Santiment noted that Bitcoin experienced a falling Mean Dollar Invested Age in most historic bull cycles, as indicated by its line in the indicator’s setup. The analytics platform noted that this scenario repeated from late October 2023 to the end of March 2024. The recent Bitcoin Mean Dollar Invested Age decline coincided with a 133% rally in Bitcoin’s price.
Santiment highlighted that the indicator has stagnated over the past couple of weeks despite the Bitcoin halving approaching. The platform noted that top stakeholders in the crypto market would have to move coins back into circulation to move the line further down, guaranteeing a rise in the value of the flagship cryptocurrency.
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